First Coastal Corp. of Westbrook, Maine, announced two deals last week designed to cut costs.
The $178 million-asset company sold its residential mortgage servicing portfolio to Centura Bank, Rocky Mount, N.C., for an undisclosed price.
The portfolio consists of servicing rights to about $46 million of residential loans First Coastal originated but sold on the secondary market.
"Servicing residential mortgage loans is a business where economies of scale are critical to profitability," said Gregory T. Caswell, president and chief executive officer, "and we have determined that managing a small portfolio such as this is not a profitable business."
The company will continue to make mortgage loans, he added.
Separately, First Coastal announced plans to sell its Kennebunk, Maine, branch to Kennebunk Savings Bank. It said it would sell the branch's deposits and some assets, as well as its lease on the building, for an undisclosed price.
"The Kennebunk location is inconsistent with our long-term strategic plans," which are focused on the Portland, Maine, metropolitan area, Mr. Caswell said.
First Coastal operates eight branches. The Kennebunk deal is expected to close in the second quarter.